BERLIN, July 9 (Xinhua) -- Corporate insolvencies in Germany climbed further in June, lifting second-quarter (Q2) business failures to their highest level in more than two decades, according to data released Thursday by the Halle Institute for Economic Research (IWH).
Germany recorded 1,702 insolvencies among partnerships and corporations in June, up 12 percent from May and 20 percent from a year earlier, the IWH said. The figure was also 80 percent above the average for the same month during the 2016-2019 period.
In total, Germany recorded 4,996 corporate insolvencies in the second quarter, up 9 percent from the previous quarter. It was the highest quarterly level since the second quarter of 2005, when 5,295 insolvencies were registered.
Insolvencies increased across almost all major sectors, including construction, real estate, retail, hospitality, and services. Around 45,500 jobs were affected by corporate insolvencies in the second quarter, compared with about 41,500 during the previous peak in 2005.
The IWH said its leading indicators, which typically precede insolvency trends by two to three months, remained above the level of a year earlier despite edging down from the previous quarter.
"The latest figures show that insolvencies remain at an exceptionally high level," said Steffen Mueller, head of insolvency research at the IWH. He added that the situation remains difficult as bankruptcies are affecting a broad range of industries and regions simultaneously, and the third quarter is expected to see more insolvencies as well. ■